Two months after launch, wait times for the iPhone 14 Pro models have reached extreme levels. The lower-end models need to be keeping up with demand.
A note from UBS Investment Bank shows that wait times have increased for the iPhone 14 Pro models. UBS has found that the wait times for iPhone 14 Pro models in most markets, including the US, have reached 34 days, based on data from 30 countries.
This number increased from seven days in early November to 19 in late October. China’s times now take 36 days, a 10-day increase from the beginning of November.
They expected people to purchase the iPhone 14 Pro Max or iPhone 14 models, as they took so long to get their hands on them. However, Vogt said that wait times for the iPhone 14 or iPhone 14 Plus were “immaterial.”
You can order an iPhone 14 Plus or base model iPhone 14 from any Apple Store, carrier store, or online. there is virtually no waiting time.
There are some risks.
UBS thinks Apple’s smartphones are trendy. However, it is concerned about the company’s ability to meet holiday demand. If wait times don’t improve in the following weeks, iPhone units may not reach consensus.
iPhone revenue could be flat year-over-year, compared to the consensus estimate of 2% growth and nearly 10% reported iPhone revenue growth for the September quarter.
UBS predicts iPhone shipment volumes to reach 83M units in the December quarter. This is slightly less than the 86M unit forecast UBS made earlier.
The target price for AAPL has been lowered to $180 by the investment bank from $185 in its previous report. This target is approximately 25x the earnings per share of $6.58 for the calendar year 2022, which was $6.58.
Apple would trade at a discount of one multiple turns to its trailing three-year average and one to its trailing one-year average, which is 25x. This is down from 30x in 2022.